How Much Does It Cost To Build A House In India?

Cost To Build A House In India : Many people prefer a custom-designed and self-built home. However, before you begin, you should be aware of the process’s direct and indirect costs. While these costs may vary by state depending on the location, labour charges, and raw material outlays, an investment estimate would be helpful. Continue reading to learn about the cost of building a house in India.

While housing units in a gated community provide a plethora of amenities and facilities, they are not typically custom-designed. As a result, many people prefer independent home construction because it allows them to personalise their living space to their liking and convenience. However, the construction of a house presents unique challenges. To avoid mismanagement of funds, extreme patience and detailed construction estimates are required. In general, homeowners are either unaware of or negligent about the cost of development. As a result, a variety of issues may arise, ranging from cost-escalation to substandard construction quality. To assist with the process, has compiled a list of factors to consider when calculating the average cost of building a house in India.

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Layout of the plot

The plot layout is the first step in building a house. An architect or designer creates a design plan for the designated plot in this stage. A layout drawing typically includes the rooms, kitchen, lavatories, stairs, terrace, balconies, storage area, parking, and any other space you wish to include. However, in exchange for the services provided, the architect or design engineer will charge a fee based on the size of the plot.

For example, if the plot is 1,000 square feet in size, the architect may charge between Rs 15,000 and Rs 20,000. However, the rates may vary slightly across locations.


Regulatory laws and standards

Building regulations vary by location, which may extend the project deadline and increase the cost of construction. For example, if your land is in an ecologically sensitive area, you must seek construction permission from the municipal body or gramme panchayat that has jurisdiction over your property. This could lead to cost overruns and project delays.

In addition, some cities have strict development rules that must be followed in order to obtain approval. For example, if you want to build a two-story house in Delhi, you must have stilt parking. If your building plan does not include this provision, the municipal body will reject it.



Methods for reducing your construction budget

“The cost of building a house is determined by two factors: civil work and finishing work,” While the structure of the house is included in the civil work, the finishing work includes doors, windows, wooden cupboards, flooring, roofing, wall designs, and painting.

Construction costs range from Rs 1,000 to Rs 5,000 per square foot, depending on the city and construction site.


The civil cost

The cost of raw materials used in the construction of the plinth, walls, roof, boundary wall, parfait, floor work, and plastering is largely included in the civil cost. Bricks, cement, concrete, sand, and RCC reinforced steel are among the most common raw materials. However, stating the quantity of raw materials is usually difficult because it is heavily dependent on the structure’s design. Furthermore, shuttering, contractor, and labour charges are included in the civil cost.

Take note: Hire a contractor with construction experience. Civil construction presents a number of challenges, and the contractor may be required to make quick decisions. As a result, the experience would make things easier and less stressful.

Brick wall construction without RCC columns typically costs between Rs 800 and Rs 900 per sq ft. Brick wall construction with RCC column, on the other hand, costs between Rs 900 and Rs 1,000 per square foot.



Cost To Build A House In India : Cost of completion

Finishing work includes, as previously stated, doors, windows, wooden work, electric fitting, sanitary fittings, pop work, and grillwork. The finishing cost typically ranges between Rs 500 and Rs 3,000 per square foot, depending on the amenities included.

Furthermore, finishing costs include labour such as electricians, plumbers, tile masons, carpenters, painters, and polishers. The cost of civil work, as well as finishing costs, makes up the majority of a house’s construction cost. As a result, the average construction cost of a 1,000 sq ft home may range between Rs 1,300 and Rs 5,000 per sq ft, according to Kuntal.

Architects, contractors, or other specialised estimating firms typically provide construction cost estimates. However, when it comes to self-evaluation, the quality of the materials used for construction is critical.


Construction raw material types and costs

Construction raw materials are classified into three types: C, B, and A.


  • C Class: Construction using low-quality bricks/sand, low-cost fixtures, and low-quality cement and steel. A 1,000-square-foot C-class house typically costs around Rs 7-8 lakh to build.
  • B Class: This type of construction uses medium-quality raw materials such as cement, steel, and fixtures and fittings. In comparison to C class, a 1,000 sq ft house built with B class materials would cost Rs 10-11 lakh to complete.
  • A Class: Because this type of construction requires the best resource quality, the cost of constructing a 1,000-square-foot house can range between Rs 15 lakh and Rs 25 lakh.



Furthermore, the cost of construction may be influenced by external factors such as:


  • Construction delays caused by the contractor’s unprofessionalism, labour strikes, or holidays
  • Increased building equipment rental costs
  • Inefficient equipment use leads to increased overhead costs.
  • Material price increases
  • An increase in labour costs

Though the scenarios described above may or may not occur, it is always better to be prepared for unforeseen challenges and budget accordingly to ensure a smooth construction process. Experts advise keeping 15-20% of the total construction cost flexible for any unexpected circumstances that may arise during the process.


Cost To Build A House In India : Average cost of construction in India (Oct 2022)

Expenses Average Expenditure for a 1,000 sq ft home
Architect Rs 15,000 onwards
Brick wall construction (without RCC) Rs 800 per sq ft
Brick wall construction with RCC) Rs 900 per sq ft
Civil work Rs 1,500 per sq ft
Electrician/Plumber Rs 2,500 per sq ft
Raw material cost Rs 7 lakh onwards



The effect of macroeconomic factors on construction costs

The COVID-19 pandemic and the Ukraine-Russia crisis have driven up construction costs in India significantly. Rising fuel prices, a shortage of construction labour, and the high cost of critical input materials such as steel, cement, stone, and plywood have all contributed to an increase in the average cost of building a house in India of up to 25%. With crude oil reaching USD 96 per barrel, transportation costs have been a major factor in India’s rising construction costs.

Although the home construction process may appear lengthy, requiring minute cost and resource planning, it is highly recommended to break down the requirements of home construction to avoid unforeseen expenses during project execution.


Cost To Build A House In India : How can construction costs be reduced?

Here are a few suggestions for lowering overall construction costs in India:


  • Local materials should be used. Choose locally available materials for cement, bricks and blocks, doors and windows, tiles, bathroom fittings, and pipes. You will save a lot of money on transportation.
  • When calculating the construction cost, remember to include the Goods and Services Tax. Building materials are subject to a 28 percent tax, which can significantly increase your overall construction costs.
  • Consider the long term. Use high-quality building materials to avoid costly repairs and maintenance. Greener alternatives can also be use to save money in the future. Consider a time span of 30 to 50 years.
  • Before hiring anyone, consult with several contractors and obtain estimates. This will help you understand market rates and your bargaining power. If you supply the building materials, you can control labour costs by employing fewer or more people at a time.





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